BB Energy buys Morgan Stanley's diesel terminal in Australia

LONDON (Reuters) - BB Energy has bought Morgan Stanley’s diesel terminal in Australia as the oil trader expands outside its core European and Middle East markets, the trading company said on Tuesday.

The logo of Morgan Stanley is seen at an office building in Zurich, Switzerland September 22, 2016. REUTERS/Arnd Wiegmann/File Photo

The U.S. bank and its peers JPMorgan Chase & Co, Deutsche Bank and Goldman Sachs have been selling their physical commodity interests after the U.S. Federal Reserve and other regulators increased scrutiny of Wall Street’s involvement in the sector in past few years.

Morgan Stanley sold its physical oil business and trading team to U.S.-based Castleton Commodities in 2015, but retains stakes in oil tanker operator Heidmar and a marine services firm. Morgan Stanley declined to comment on the BB Energy deal.

“With the ongoing recovery of the mining sector and our diesel sourcing and trading network in the Far East, we believe we can play a role in the Australian market,” BB Energy chief executive Mohamed Bassatne said in a statement.

The acquisition is BB Energy’s first in Australia. The company plans to open an office in Brisbane by April, expanding its operations from its origins as a Mediterranean trading firm.